Nikola Extends Hydrogen Fuel Cell Rally in Premarket, Up 14.7%
Following a 32% surge on Thursday, Nikola Corp.’s stock rose by an additional 14.7% in premarket trading Friday after the company’s recently-appointed CEO Steve Girsky held a forum to answer investors’ concerns. During the discussions, Girsky said Nikola is scheduled to begin deliveries of its long-awaited hydrogen fuel cell trucks, most likely in late September and early October.
Nikola on Track to Begin Hydrogen Fuel Cell Truck Deliveries
Shares of Nikola Corp. closed 32% higher on Thursday after investors welcomed the CEO’s comments that the company remains on track to start delivering its hydrogen fuel cell trucks once it wraps up final testing. Furthermore, the rally extended into Friday premarket trading, with the stock currently up by an additional 15%.
The much-needed boost to Nikola’s share price comes after the electric truckmaker’s Chief Executive Officer, Steve Girsky, hosted a forum to discuss critical business issues and answered investors’ questions. As seen from Nikola’s stock price, investors liked what Girsky had to say, especially regarding the company’s upcoming hydrogen fuel cell vehicles.
Notably, Girsky said the deliveries of its battery-electric trucks had been halted. However, this would not affect the company’s hydrogen fuel cell truck deliveries schedule.
“We want you all to be aware that the battery-electric truck recall does not affect the production or deliveries of the fuel cell electric vehicle since it uses a different battery pack from a different supplier,” Girsky said. He added that the production of these vehicles started on July 31, with the first deliveries planned for late September and early October.
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Nikola’s 2023 Struggles and Management Shuffle
Girsky’s forum to address investors’ concerns comes just a month after he took over the troubled electric vehicle manufacturer. The 61-year-old secured the top position at the company after ex-CEO Michael Lohscheller stepped down due to a “family health matter.”
The reorganization was announced alongside Nikola’s worse-than-expected Q2 2023 earnings report, which sent the shares plummeting more than 26%.
The Phoenix, Arizona-based EV company faced many challenges in 2023, notably two battery-related incidents. Specifically, Nikola recalled 209 battery-electric trucks in August after a faulty part caused fires.
Girsky, who previously served as Nikola’s board chair and GM’s Vice Chairman, was seen as a strong candidate to turn things around for the company, given his extensive experience in the industry. Although the automaker’s stock recovered sharply on Thursday, it remains down over 48% year-to-date.
Do you think Nikola Corp. remains a solid stock despite its challenges? Let us know in the comments below.